Is a pay cut tax deductable?

[XMan]

How about non-reimbursed moving expenses?

 

[GasX]

Originally posted by: X-Man
How about non-reimbursed moving expenses?

pay cut? ummm.. wtf?

the answer to your second question is maybe - did you move at least 50 miles?

 

[Yossarian]

pay cut isn't deductible, you just pay less tax on what you earn. non-reimbursed moving expenses are most likely deductible depending on what they are.

 

[conjur]

A pay cut??

Not quite!

As for non-reimbursed moving expenses. I believe so but there are requirements. Just check out the IRS site

 

[PlatinumGold]

paycut?

you're looking to cheat the government' aren't you, either that or you're just plain stupid.

HOW CAN YOU GET A TAX CUT FOR HAVING YOUR INCOME REDUCED?

the fact that your income is reduced means that you will have a smaller base on which to pay taxes, now do you want an additional credit because your income was reduced??

 

[vi edit]

A pay cut isn't like claiming losses against capital gains. You didn't really loose money, you just aren't making as much. Small, but very important difference.

As for moving - look here.

 

[XMan]

Originally posted by: conjur
A pay cut??

Not quite!

[/L]

Hehe, hey I figured it was worth a shot. I remember seeing moving expenses on my 1040, wasn't sure if anyone had any experiences with it. And yes, I'm moving more than 50 miles . . . more like 2,000.

 

[SuperTool]

Pay cut = less taxable income. So whatever pay was cut, you don't have to pay taxes on it, since it's no longer your income.
As far as moving/relocation expenses, I am not sure. I am guessing it's not tax deductable, because when I relocated at work, they grossed it up so that after taxes it came out to be 5K, so I assume there were some taxes paid for it.

 

[XMan]

Originally posted by: vi_edit
A pay cut isn't like claiming losses against capital gains. You didn't really loose money, you just aren't making as much. Small, but very important difference.

As for moving - look here.

Ahhh ok, yeah thanks for the clarification. The capital gains write-off was what I was thinking, so I assumed it might also apply as a 1-time deduction.

And it looks like I should be able to write off everything except meal expenses - lodging, gas, and trailer rental. Cool.